STATE BANK FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - STATE BANK FINANCIAL CORP	a1q17earningspresentatio.htm
8-K - 8-K - STATE BANK FINANCIAL CORP	a8kcoverpage33117.htm

Investor Relations Contact: Jeremy Lucas 404.239.8626 / jeremy.lucas@statebt.com

State Bank Financial Corporation Reports First Quarter 2017 Financial Results


▪	First quarter 2017 net income of $11.6 million, or $.30 per diluted share


▪	Successful integration of two acquisitions, with conversion completed in February


▪	10% linked-quarter revenue growth


▪	Loan growth of $46.7 million, or 7% annualized, excluding purchased credit impaired loans


▪	Asset-sensitive balance sheet contributed to net interest margin expansion

ATLANTA, GA, April 27, 2017 - State Bank Financial Corporation (NASDAQ: STBZ) today announced unaudited financial results for the first quarter ended March 31, 2017. Net income for the first quarter of 2017 was $11.6 million, compared to $10.3 million in the fourth quarter of 2016 and $10.8 million in the first quarter of 2016. Fully diluted earnings per share were $.30 in the first quarter of 2017 compared to $.28 in the fourth quarter of 2016 and $.29 in the first quarter of 2016. The first quarter of 2017 included $2.2 million of merger-related expenses, which reduced earnings per share by approximately $.04 in the quarter, net of tax.

Joe Evans, Chairman and CEO of State Bank Financial, commented, “We are off to a fast start in 2017 as we kicked off the year by welcoming two new banks. Our new teams combined with solid performance throughout the existing franchise to generate net income of $11.6 million in the first quarter. Quick integration of the acquisitions should drive even better performance in future quarters as the merger and integration costs decline.”

Operating Highlights

Interest income on loans, excluding accretion income on loans, improved to $34.1 million in the first quarter of 2017, a $7.4 million increase from the fourth quarter of 2016 and a $9.7 million increase from the first quarter of 2016. Net interest income of $44.0 million in the first quarter of 2017 increased from $39.1 million in the fourth quarter of 2016 and $36.6 million in the first quarter of 2016. Accretion income on loans was $7.7 million in the first quarter of 2017, down from $10.3 million in the fourth quarter of 2016 and $9.7 million in the first quarter of 2016 as there were no loan pool closings in the first quarter of 2017. As of March 31, 2017, approximately $63 million of accretable discount remains to be recognized as loan accretion income.

Noninterest income was $9.5 million in the first quarter of 2017, compared to $9.9 million in the fourth quarter of 2016 and $9.4 million in the first quarter of 2016. A solid quarter for mortgage banking helped offset lower SBA income in the first quarter of 2017. Mortgage banking income increased $383,000 from the previous quarter to $2.9 million, while payroll and insurance income declined $33,000 to $1.5 million.

SBA income declined $540,000 to $1.2 million in the first quarter of 2017 primarily due to timing of loan sales as well as rebuilding the loan pipeline after a strong fourth quarter in 2016.

Total noninterest expense, which was impacted by the recent acquisitions of The National Bank of Georgia and S Bank, totaled $34.6 million in the first quarter of 2017, compared to $32.9 million in the fourth quarter of 2016 and $28.9 million in the first quarter of 2016. The National Bank of Georgia and S Bank added approximately $2.6 million of total noninterest expense in the first quarter of 2017, as the full conversion and integration was not completed until midway through the first quarter of 2017. Additionally, $2.2 million of merger-related expenses were recorded in the first quarter of 2017.

Financial Condition

Total assets at March 31, 2017, were $4.20 billion, down from $4.23 billion at December 31, 2016. Total loans were $2.9 billion at March 31, 2017, up $40.2 million from the fourth quarter of 2016. Period-end organic and purchased non-credit impaired loans increased to $2.7 billion at March 31, 2017, a net increase of $46.7 million from the fourth quarter of 2016. Purchased credit impaired loans decreased to $154.2 million at the end of the first quarter of 2017, a $6.5 million linked-quarter decline.

Tom Wiley, Vice Chairman and President, commented, “We had 7% annualized loan growth in the first quarter, driven by organic loan growth of nearly 16% annualized, all while remaining disciplined with regards to risk and pricing. We also successfully converted and integrated two new banks into State Bank’s systems in February, and I could not be more pleased with how well-planned and minimally disruptive the integration process was for our clients. I am very optimistic about future growth in our markets, particularly the tremendous opportunities in our new markets.”

The organic loan portfolio continued to perform well in the first quarter of 2017 as past due organic

loans represented .08% of total organic loans. The provision for loan losses on organic loans was $1.3 million in the first quarter of 2017 and was primarily attributable to organic loan growth in the quarter. The allowance as a percent of loans was unchanged at 1.01% at the end of the first quarter of 2017 and covers organic nonperforming assets by more than three times.

Total deposits at March 31, 2017, were $3.41 billion, down $21.4 million from $3.43 billion at December 31, 2016. In the first quarter of 2017, a decline of $104.1 million in period-end transaction accounts, which are comprised of noninterest-bearing demand deposits and interest-bearing transaction accounts, was partially offset by a $100.8 million increase in savings and money market accounts. The changes in deposit balances were related to the seasonal cash operating cycle of State Bank’s clients. Noninterest-bearing demand deposits represented 27.7% of total deposits as of March 31, 2017.

Tangible book value per share was $13.66 at the end of the first quarter of 2017. State Bank Financial Corporation continues to be well capitalized, ending the quarter with a leverage ratio of 13.04% and a Tier I risk-based capital ratio of 14.74%.

Detailed Results

Supplemental tables displaying financial results for the first quarter of 2017 and the previous four quarters are included with this press release.

Non-GAAP Financial Measures

This press release contains financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For more information on these non-GAAP financial measures, please refer to 1Q17 Financial Supplement: Table 7, Reconciliation of Non-GAAP Measures.

Conference Call

Chief Executive Officer Joe Evans, President Tom Wiley, Chief Financial Officer Sheila Ray, and Chief Credit Officer David Black will discuss financial and business results for the quarter on a conference call today at 11:00 a.m. ET.

Dial in number: 1.800.678.2887

Please allow time to register your name and affiliation/company prior to the start of the call. A replay of the conference call will be available shortly after the call is completed in the Investors section on the company’s website at www.statebt.com. A slide presentation for today’s call is also available in the Investors section on the company’s website.

About State Bank Financial Corporation

State Bank Financial Corporation (NASDAQ: STBZ), with approximately $4.2 billion in assets as of March 31, 2017, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank operates 31 full-service banking offices and eight mortgage origination offices in seven of Georgia’s eight largest MSAs.

To learn more about State Bank, visit www.statebt.com

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release and other information that we make publicly available from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “intend,” “anticipate,” “plan,” “seek,” “believe,” “expect,” “strategy,” “future,” “likely,” “project,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding the amount of accretable discount that remains, future accretion income on loans, future growth in our markets, particularly the tremendous opportunities in our new markets, our belief that quick integration of the recent acquisitions should drive better performance in future quarters, and other statements regarding our strategic initiatives. Such forward-looking statements are subject to risks, uncertainties, and other factors, including a downturn in the economy, particularly in our markets, volatile credit and financial markets both domestic and foreign, potential deterioration in real estate values, regulatory changes and excessive loan losses, as well as additional risks and uncertainties contained in the “Risk Factors” and forward-looking statements disclosure contained in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, any or all of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance

that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.



State Bank Financial Corporation
1Q17 Financial Supplement: Table 1
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
															1Q17 change vs
(Dollars in thousands, except per share amounts)	1Q17			4Q16			3Q16		2Q16			1Q16			4Q16			1Q16

Income Statement Highlights
Interest income on loans	$	34,060		$	26,696		$	26,580	$	25,406		$	24,342		$	7,364		$	9,718
Accretion income on loans	7,677			10,271			9,335		13,961			9,743			(2,594		)	(2,066		)
Interest income on invested funds	5,460			4,810			4,714		4,726			4,673			650			787
Total interest income	47,197			41,777			40,629		44,093			38,758			5,420			8,439
Interest expense	3,239			2,631			2,504		2,371			2,113			608			1,126
Net interest income	43,958			39,146			38,125		41,722			36,645			4,812			7,313
Provision for loan and lease losses (organic & PNCI loans)	1,361			300			7		1,600			1,689			1,061			(328		)
Provision for loan and lease losses (purchased credit impaired loans)	(359		)	(23		)	81		(1,594		)	(1,823		)	(336		)	1,464
Provision for loan and lease losses	1,002			277			88		6			(134		)	725			1,136
Total noninterest income	9,459			9,911			9,769		10,230			9,391			(452		)	68
Total noninterest expense	34,565			32,875			28,480		30,674			28,898			1,690			5,667
Income before income taxes	17,850			15,905			19,326		21,272			17,272			1,945			578
Income tax expense	6,292			5,578			6,885		7,287			6,434			714			(142		)
Net income	$	11,558		$	10,327		$	12,441	$	13,985		$	10,838		$	1,231		$	720

Common Share Data
Basic earnings per share	$	.30		$	.28		$	.34	$	.38		$	.29		$	.02		$	.01
Diluted earnings per share	.30			.28			.34		.38			.29			.02			.01
Cash dividends declared per share	.14			.14			.14		.14			.14			—			—
Book value per share	15.96			15.80			15.21		15.00			14.73			.16			1.23
Tangible book value per share (1)	13.66			13.48			13.99		13.77			13.49			.18			.17
Market price per share (quarter end)	26.12			26.86			22.82		20.35			19.76			(.74		)	6.36

Common Shares Outstanding
Common stock	38,870,424			38,845,573			36,894,553		36,894,641			37,052,008			24,851			1,818,416
Weighted average shares outstanding:
Basic	37,867,718			35,904,009			35,863,183		35,822,654			36,092,269			1,963,709			1,775,449
Diluted	37,954,585			36,009,098			35,965,948		35,923,691			36,187,662			1,945,487			1,766,923

Average Balance Sheet Highlights
Loans	$	2,846,618		$	2,431,512		$	2,406,629	$	2,326,666		$	2,250,518		$	415,106		$	596,100
Assets	4,182,008			3,636,544			3,564,860		3,524,468			3,476,781			545,464			705,227
Deposits	3,423,506			2,975,510			2,866,822		2,873,019			2,854,514			447,996			568,992
Equity	617,056			559,561			557,365		546,838			542,444			57,495			74,612
Tangible common equity (1)	527,650			514,982			512,265		501,221			496,287			12,668			31,363



State Bank Financial Corporation
1Q17 Financial Supplement: Table 1 (continued)
Condensed Consolidated Financial Summary Results
Quarterly (Unaudited)
											1Q17 change vs
(Dollars in thousands, except per share amounts)	1Q17		4Q16		3Q16		2Q16		1Q16		4Q16		1Q16

Key Metrics (2)
Return on average assets	1.12	%	1.13	%	1.39	%	1.60	%	1.25	%	(.01	)%	(.13	)%
Return on average equity	7.60		7.34		8.88		10.29		8.04		.26		(.44	)
Yield on earning assets	4.93		4.87		4.84		5.37		4.79		.06		.14
Cost of funds	.37		.35		.34		.33		.29		.02		.08
Rate on interest-bearing liabilities	.52		.49		.47		.46		.42		.03		.10
Net interest margin	4.59		4.56		4.54		5.08		4.53		.03		.06
Net interest margin excluding accretion income (3)	3.95		3.50		3.57		3.53		3.48		.45		.47
Leverage ratio (4)	13.04		14.90		14.64		14.56		14.59		(1.86	)	(1.55	)
Tier I risk-based capital ratio (4)	14.74		14.78		16.68		16.52		17.09		(.04	)	(2.35	)
Total risk-based capital ratio (4)	15.49		15.52		17.56		17.42		18.13		(.03	)	(2.64	)
Efficiency ratio (5)	64.71		67.01		59.46		59.04		62.77		(2.30	)	1.94
Average loans to average deposits	83.15		81.72		83.95		80.98		78.84		1.43		4.31
Noninterest-bearing deposits to total deposits	27.71		28.69		30.09		28.75		30.68		(.98	)	(2.97	)

(1) Denotes a non-GAAP financial measure. See Reconciliation of Non-GAAP Measures (Table 7) for further information.

(2) Income statement ratios and yield/rate information are annualized for the applicable period.

(3) Excludes accretion income on loans and average purchased credit impaired loans.

(4) Current period capital ratios are estimated as of the date of this earnings release.

(5) Noninterest expense divided by net interest income plus noninterest income.



State Bank Financial Corporation
1Q17 Financial Supplement: Table 2
Condensed Consolidated Balance Sheets
Quarterly (Unaudited)
																1Q17 change vs
(Dollars in thousands)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Assets
Cash and amounts due from depository institutions	$	12,101		$	13,219		$	10,648		$	11,964		$	14,398		$	(1,118	)	$	(2,297	)
Interest-bearing deposits in other financial institutions	62,222			132,851			103,122			70,603			102,355			(70,629		)	(40,133		)
Federal funds sold	—			3,523			—			—			—			(3,523		)	—
Cash and cash equivalents	74,323			149,593			113,770			82,567			116,753			(75,270		)	(42,430		)
Investment securities available-for-sale	896,297			847,178			822,655			824,980			849,576			49,119			46,721
Investment securities held-to-maturity	67,053			67,063			67,071			63,080			60,591			(10		)	6,462
Loans	2,854,780			2,814,572			2,346,346			2,345,096			2,258,533			40,208			596,247
Allowance for loan and lease losses	(26,976		)	(26,598		)	(27,177		)	(27,599		)	(30,345		)	(378		)	3,369
Loans, net	2,827,804			2,787,974			2,319,169			2,317,497			2,228,188			39,830			599,616
Loans held-for-sale	51,380			52,169			63,852			71,302			55,219			(789		)	(3,839		)
Other real estate owned	3,759			10,897			10,609			11,578			11,590			(7,138		)	(7,831		)
Premises and equipment, net	51,535			52,056			42,009			42,153			42,802			(521		)	8,733
Goodwill	77,084			77,084			36,357			36,357			36,357			—			40,727
Other intangibles, net	12,054			12,749			8,515			9,029			9,556			(695		)	2,498
SBA servicing rights	3,547			3,477			3,275			3,165			2,882			70			665
Bank-owned life insurance	65,855			65,371			60,282			59,749			59,281			484			6,574
Other assets	71,990			99,654			69,211			65,309			60,418			(27,664		)	11,572
Total assets	$	4,202,681		$	4,225,265		$	3,616,775		$	3,586,766		$	3,533,213		$	(22,584	)	$	669,468
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	944,838		$	984,419		$	890,588		$	829,673		$	891,511		$	(39,581	)	$	53,327
Interest-bearing deposits	2,464,937			2,446,746			2,068,704			2,055,817			2,014,087			18,191			450,850
Total deposits	3,409,775			3,431,165			2,959,292			2,885,490			2,905,598			(21,390		)	504,177
Federal funds purchased and securities sold under agreements to repurchase	25,056			27,673			20,124			33,923			33,503			(2,617		)	(8,447		)
FHLB borrowings	100,000			47,014			20,000			62,000			—			52,986			100,000
Notes payable	398			398			398			398			1,808			—			(1,410		)
Other liabilities	47,169			105,382			55,827			51,599			46,449			(58,213		)	720
Total liabilities	3,582,398			3,611,632			3,055,641			3,033,410			2,987,358			(29,234		)	595,040
Total shareholders’ equity	620,283			613,633			561,134			553,356			545,855			6,650			74,428
Total liabilities and shareholders’ equity	$	4,202,681		$	4,225,265		$	3,616,775		$	3,586,766		$	3,533,213		$	(22,584	)	$	669,468

Capital Ratios (1)
Average equity to average assets	14.76		%	15.39		%	15.63		%	15.52		%	15.60		%	(.63		)%	(.84		)%
Leverage ratio	13.04			14.90			14.64			14.56			14.59			(1.86		)	(1.55		)
CET1 risk-based capital ratio	14.74			14.78			16.68			16.52			17.09			(.04		)	(2.35		)
Tier I risk-based capital ratio	14.74			14.78			16.68			16.52			17.09			(.04		)	(2.35		)
Total risk-based capital ratio	15.49			15.52			17.56			17.42			18.13			(.03		)	(2.64		)

(1) Current period capital ratios are estimated as of the date of this earning release.



State Bank Financial Corporation
1Q17 Financial Supplement: Table 3
Condensed Consolidated Income Statements
Quarterly (Unaudited)
																1Q17 change vs
(Dollars in thousands, except per share amounts)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Net Interest Income:
Interest income on loans	$	34,060		$	26,696		$	26,580		$	25,406		$	24,342		$	7,364		$	9,718
Accretion income on loans	7,677			10,271			9,335			13,961			9,743			(2,594		)	(2,066		)
Interest income on invested funds	5,460			4,810			4,714			4,726			4,673			650			787
Interest expense	3,239			2,631			2,504			2,371			2,113			608			1,126
Net interest income	43,958			39,146			38,125			41,722			36,645			4,812			7,313
Provision for loan and lease losses (organic & PNCI loans)	1,361			300			7			1,600			1,689			1,061			(328		)
Provision for loan and lease losses (purchased credit impaired loans)	(359		)	(23		)	81			(1,594		)	(1,823		)	(336		)	1,464
Provision for loan and lease losses	1,002			277			88			6			(134		)	725			1,136
Net interest income after provision for loan and lease losses	42,956			38,869			38,037			41,716			36,779			4,087			6,177
Noninterest Income:
Service charges on deposits	1,467			1,319			1,383			1,352			1,386			148			81
Mortgage banking income	2,894			2,511			3,216			3,551			3,041			383			(147		)
Payroll and insurance income	1,495			1,528			1,297			1,282			1,518			(33		)	(23		)
SBA income	1,178			1,718			1,553			1,685			1,502			(540		)	(324		)
ATM income	832			735			759			769			745			97			87
Bank-owned life insurance income	484			467			533			468			462			17			22
Gain on sale of investment securities	12			42			38			396			13			(30		)	(1		)
Other	1,097			1,591			990			727			724			(494		)	373
Total noninterest income	9,459			9,911			9,769			10,230			9,391			(452		)	68
Noninterest Expense:
Salaries and employee benefits	22,057			19,554			19,799			20,662			18,760			2,503			3,297
Occupancy and equipment	3,280			3,069			2,984			3,015			3,101			211			179
Data processing	2,639			2,131			2,097			2,211			2,075			508			564
Legal and professional fees	1,805			1,702			1,064			976			953			103			852
Merger-related expenses	2,235			3,507			135			319			—			(1,272		)	2,235
Marketing	664			430			665			619			502			234			162
Federal deposit insurance premiums and other regulatory fees	397			188			441			553			562			209			(165		)
Loan collection costs and OREO activity	(1,042		)	(127		)	(841		)	(96		)	485			(915		)	(1,527		)
Amortization of intangibles	696			516			513			528			545			180			151
Other	1,834			1,905			1,623			1,887			1,915			(71		)	(81		)
Total noninterest expense	34,565			32,875			28,480			30,674			28,898			1,690			5,667
Income Before Income Taxes	17,850			15,905			19,326			21,272			17,272			1,945			578
Income tax expense	6,292			5,578			6,885			7,287			6,434			714			(142		)
Net Income	$	11,558		$	10,327		$	12,441		$	13,985		$	10,838		$	1,231		$	720

Net income allocated to participating securities	$	295		$	282		$	348		$	408		$	285		$	13		$	10
Net income allocated to common shareholders	11,263			10,045			12,093			13,577			10,553			1,218			710
Earnings Per Share
Basic	$	.30		$	.28		$	.34		$	.38		$	.29		$	.02		$	.01
Diluted	.30			.28			.34			.38			.29			.02			.01
Weighted Average Shares Outstanding
Basic	37,867,718			35,904,009			35,863,183			35,822,654			36,092,269			1,963,709			1,775,449
Diluted	37,954,585			36,009,098			35,965,948			35,923,691			36,187,662			1,945,487			1,766,923



State Bank Financial Corporation
1Q17 Financial Supplement: Table 4
Condensed Consolidated Composition of Loans and Deposits at Period Ends
Quarterly (Unaudited)
											1Q17 change vs
(Dollars in thousands)	1Q17		4Q16		3Q16		2Q16		1Q16		4Q16			1Q16

Composition of Loans
Organic loans (1):
Construction, land & land development	$	418,186	$	500,018	$	486,299	$	470,672	$	452,654	$	(81,832	)	$	(34,468	)
Other commercial real estate	885,570		754,790		744,270		748,949		719,340		130,780			166,230
Total commercial real estate	1,303,756		1,254,808		1,230,569		1,219,621		1,171,994		48,948			131,762
Residential real estate	161,460		144,295		139,926		139,832		140,493		17,165			20,967
Owner-occupied real estate	251,703		256,317		239,726		238,059		222,347		(4,614		)	29,356
Commercial, financial & agricultural	336,257		327,381		306,141		290,245		233,169		8,876			103,088
Leases	62,603		71,724		74,722		82,977		93,490		(9,121		)	(30,887		)
Consumer	56,776		36,039		39,373		34,124		33,847		20,737			22,929
Total organic loans	2,172,555		2,090,564		2,030,457		2,004,858		1,895,340		81,991			277,215
Purchased non-credit impaired loans(2):
Construction, land & land development	43,787		51,208		10,035		11,427		13,959		(7,421		)	29,828
Other commercial real estate	188,737		209,531		58,261		64,665		70,444		(20,794		)	118,293
Total commercial real estate	232,524		260,739		68,296		76,092		84,403		(28,215		)	148,121
Residential real estate	137,699		144,596		56,468		60,100		65,948		(6,897		)	71,751
Owner-occupied real estate	119,871		115,566		52,016		56,414		57,519		4,305			62,352
Commercial, financial & agricultural	33,690		36,206		10,447		11,121		13,315		(2,516		)	20,375
Consumer	4,281		6,255		1,826		1,978		2,213		(1,974		)	2,068
Total purchased non-credit impaired loans	528,065		563,362		189,053		205,705		223,398		(35,297		)	304,667
Purchased credit impaired loans (3):
Construction, land & land development	17,211		16,537		11,564		13,310		13,245		674			3,966
Other commercial real estate	60,664		60,742		38,238		39,218		40,119		(78		)	20,545
Total commercial real estate	77,875		77,279		49,802		52,528		53,364		596			24,511
Residential real estate	49,728		54,507		53,953		56,887		60,579		(4,779		)	(10,851		)
Owner-occupied real estate	22,099		23,980		22,389		24,281		24,834		(1,881		)	(2,735		)
Commercial, financial & agricultural	4,153		4,533		608		722		871		(380		)	3,282
Consumer	305		347		84		115		147		(42		)	158
Total purchased credit impaired loans	154,160		160,646		126,836		134,533		139,795		(6,486		)	14,365
Total loans	$	2,854,780	$	2,814,572	$	2,346,346	$	2,345,096	$	2,258,533	$	40,208		$	596,247
Composition of Deposits
Noninterest-bearing demand deposits	$	944,838	$	984,419	$	890,588	$	829,673	$	891,511	$	(39,581	)	$	53,327
Interest-bearing transaction accounts	599,858		664,350		547,078		531,676		539,322		(64,492		)	60,536
Savings and money market deposits	1,393,711		1,292,867		1,101,458		1,097,098		1,017,930		100,844			375,781
Time deposits less than $250,000	369,430		387,410		332,873		345,999		348,304		(17,980		)	21,126
Time deposits $250,000 or greater	85,459		79,439		57,556		63,686		64,494		6,020			20,965
Brokered and wholesale time deposits	16,479		22,680		29,739		17,358		44,037		(6,201		)	(27,558		)
Total deposits	$	3,409,775	$	3,431,165	$	2,959,292	$	2,885,490	$	2,905,598	$	(21,390	)	$	504,177

(1) Loans originated by State Bank and Trust Company.

(2) Consists of loans purchased in our acquisitions of Bank of Atlanta, First Bank of Georgia, The National Bank of Georgia, and S Bank.

(3) Acquired loans, which at acquisition, management determined it was probable that we would be unable to collect all contractual principal and interest payments due, including all loans acquired from the FDIC.



State Bank Financial Corporation
1Q17 Financial Supplement: Table 5
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
																1Q17 change vs
(Dollars in thousands)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Allowance for loan and lease losses on organic loans
Beginning Balance	$	21,086		$	21,736		$	22,008		$	22,626		$	21,224		$	(650	)	$	(138	)
Charge-offs	(540		)	(553		)	(311		)	(2,307		)	(240		)	13			(300		)
Recoveries	77			34			39			54			96			43			(19		)
Net (charge-offs) recoveries	(463		)	(519		)	(272		)	(2,253		)	(144		)	56			(319		)
Provision for loan and lease losses	1,262			(131		)	—			1,635			1,546			1,393			(284		)
Ending Balance	$	21,885		$	21,086		$	21,736		$	22,008		$	22,626		$	799		$	(741	)

Allowance for loan and lease losses on purchased non-credit impaired loans
Beginning Balance	$	439		$	150		$	158		$	166		$	53		$	289		$	386
Charge-offs	(48		)	(143		)	(16		)	(1		)	(63		)	95			15
Recoveries	1			1			1			28			33			—			(32		)
Net (charge-offs) recoveries	(47		)	(142		)	(15		)	27			(30		)	95			(17		)
Provision for loan and lease losses	99			431			7			(35		)	143			(332		)	(44		)
Ending Balance	$	491		$	439		$	150		$	158		$	166		$	52		$	325

Allowance for loan and lease losses on purchased credit impaired loans
Beginning Balance	$	5,073		$	5,291		$	5,433		$	7,553		$	7,798		$	(218	)	$	(2,725	)
Charge-offs	(114		)	(195		)	(223		)	(606		)	(1,516		)	81			1,402
Recoveries	—			—			—			80			3,094			—			(3,094		)
Net (charge-offs) recoveries	(114		)	(195		)	(223		)	(526		)	1,578			81			(1,692		)
Provision for loan and lease losses	(359		)	(23		)	81			(1,594		)	(1,823		)	(336		)	1,464
Ending Balance	$	4,600		$	5,073		$	5,291		$	5,433		$	7,553		$	(473	)	$	(2,953	)

Nonperforming organic assets
Nonaccrual loans	$	6,114		$	6,234		$	6,423		$	6,927		$	9,416		$	(120	)	$	(3,302	)
Total nonperforming organic loans	6,114			6,234			6,423			6,927			9,416			(120		)	(3,302		)
Other real estate owned	232			282			83			42			33			(50		)	199
Total nonperforming organic assets	$	6,346		$	6,516		$	6,506		$	6,969		$	9,449		$	(170	)	$	(3,103	)

Nonperforming purchased non-credit impaired assets
Nonaccrual loans	$	4,098		$	3,381		$	1,672		$	1,744		$	1,705		$	717		$	2,393
Accruing TDRs	—			—			—			—			923			—			(923		)
Total nonperforming PNCI loans	4,098			3,381			1,672			1,744			2,628			717			1,470
Other real estate owned	—			—			21			21			22			—			(22		)
Total nonperforming PNCI assets	$	4,098		$	3,381		$	1,693		$	1,765		$	2,650		$	717		$	1,448

Ratios for organic assets
Annualized QTD charge-offs (recoveries) on organic loans to average organic loans	.09		%	.10		%	.05		%	.47		%	.03		%	(.01)		%	.06		%
Nonperforming organic loans to organic loans	.28			.30			.32			.35			.50			(.02		)	(.22		)
Nonperforming organic assets to organic loans + OREO	.29			.31			.32			.35			.50			(.02		)	(.21		)
Past due organic loans to organic loans	.08			.06			.09			.18			.47			.02			(.39		)
Allowance for loan and lease losses on organic loans to organic loans	1.01			1.01			1.07			1.10			1.19			—			(.18		)



State Bank Financial Corporation
1Q17 Financial Supplement: Table 5 (continued)
Condensed Consolidated Asset Quality Data
Quarterly (Unaudited)
											1Q17 change vs
(Dollars in thousands)	1Q17		4Q16		3Q16		2Q16		1Q16		4Q16		1Q16

Ratios for purchased non-credit impaired loans
Annualized QTD charge-offs (recoveries) on PNCI loans to average PNCI loans	.03	%	.31	%	.03	%	(.05)	%	.05	%	(.28)	%	(.02)	%
Nonperforming PNCI loans to PNCI loans	.78		.60		.88		.85		1.18		.18		(.40	)
Nonperforming PNCI assets to PNCI loans + OREO	.78		.60		.90		.86		1.19		.18		(.41	)
Past due PNCI loans to PNCI loans	.90		.68		.41		.40		.30		.22		.60
Allowance for loan and lease losses on PNCI loans to PNCI loans	.09		.08		.08		.08		.07		.01		.02

Ratios for purchased credit impaired loans (1)
Annualized QTD charge-offs (recoveries) on PCI loans to average PCI loans	.30	%	.63	%	.68	%	1.57	%	(4.50)	%	(.33)	%	4.80	%
Past due PCI loans to PCI loans	10.68		8.92		11.00		10.92		17.90		1.76		(7.22	)
Allowance for loan and lease losses on PCI loans to PCI loans	2.98		3.16		4.17		4.04		5.40		(.18	)	(2.42	)

(1) For each period presented, a portion of our purchased credit impaired loans were contractually past due; however, such delinquencies

were included in our performance expectations in determining the fair values of purchased credit impaired loans at each acquisition and at subsequent valuation dates. All purchased credit impaired loan cash flows and the timing of such cash flows continue to be estimable and probable of collection and thus accretion income continues to be recognized on these assets. As such, we do not consider purchased credit impaired loans to be nonperforming assets.



State Bank Financial Corporation
1Q17 Financial Supplement: Table 6
Condensed Consolidated Average Balances and Yield Analysis
Quarterly (Unaudited)
																1Q17 change vs
(Dollars in thousands)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16
Average Balances
Interest-bearing deposits in other financial institutions and federal funds sold	$	85,720		$	82,797		$	63,315		$	80,638		$	126,289		$	2,923		$	(40,569	)
Investment securities	961,913			911,025			881,642			905,019			892,365			50,888			69,548
Loans, excluding purchased credit impaired (1)	2,692,564			2,307,794			2,275,859			2,191,506			2,109,449			384,770			583,115
Purchased credit impaired loans	154,054			123,718			130,770			135,160			141,069			30,336			12,985
Total earning assets	3,894,251			3,425,334			3,351,586			3,312,323			3,269,172			468,917			625,079
Total nonearning assets	287,757			211,210			213,274			212,145			207,609			76,547			80,148
Total assets	4,182,008			3,636,544			3,564,860			3,524,468			3,476,781			545,464			705,227
Interest-bearing transaction accounts	602,378			575,977			515,974			531,359			538,926			26,401			63,452
Savings & money market deposits	1,388,876			1,118,548			1,105,635			1,052,106			1,036,498			270,328			352,378
Time deposits less than $250,000	387,090			325,838			340,275			351,883			314,950			61,252			72,140
Time deposits $250,000 or greater	69,721			59,308			61,172			64,869			53,786			10,413			15,935
Brokered and wholesale time deposits	19,926			22,885			20,723			24,471			48,039			(2,959		)	(28,113		)
Other borrowings	81,344			52,555			94,455			61,146			33,635			28,789			47,709
Total interest-bearing liabilities	2,549,335			2,155,111			2,138,234			2,085,834			2,025,834			394,224			523,501
Noninterest-bearing deposits	955,515			872,954			823,043			848,331			862,315			82,561			93,200
Other liabilities	60,102			48,918			46,218			43,465			46,188			11,184			13,914
Shareholders’ equity	617,056			559,561			557,365			546,838			542,444			57,495			74,612
Total liabilities and shareholders' equity	4,182,008			3,636,544			3,564,860			3,524,468			3,476,781			545,464			705,227

Interest Margins (2)
Interest-bearing deposits in other financial institutions and federal funds sold	.44		%	.31		%	.28		%	.33		%	.38		%	.13		%	.06		%
Investment securities, tax-equivalent basis (3)	2.26			2.07			2.11			2.07			2.05			.19			.21
Loans, excluding purchased credit impaired, tax-equivalent basis (4)	5.15			4.63			4.67			4.68			4.67			.52			.48
Purchased credit impaired loans	20.21			33.03			28.40			41.54			27.78			(12.82		)	(7.57		)
Total earning assets	4.93		%	4.87		%	4.84		%	5.37		%	4.79		%	.06		%	.14		%
Interest-bearing transaction accounts	.12			.12			.12			.12			.12			—			—
Savings & money market deposits	.60			.59			.54			.53			.50			.01			.10
Time deposits less than $250,000	.72			.70			.67			.64			.51			.02			.21
Time deposits $250,000 or greater	.73			.84			.77			.71			.53			(.11		)	.20
Brokered and wholesale time deposits	1.06			.85			.92			1.07			1.07			.21			(.01		)
Other borrowings	.65			.45			.40			.52			.65			.20			—
Total interest-bearing liabilities	.52		%	.49		%	.47		%	.46		%	.42		%	.03		%	.10		%
Net interest spread	4.41		%	4.38		%	4.37		%	4.91		%	4.37		%	.03		%	.04		%
Net interest margin	4.59		%	4.56		%	4.54		%	5.08		%	4.53		%	.03		%	.06		%
Net interest margin excluding accretion income	3.95		%	3.50		%	3.57		%	3.53		%	3.48		%	.45		%	.47		%

(1) Includes average nonaccrual loans of $9.9 million for 1Q17, $8.4 million for 4Q16, $8.6 million for 3Q16, $10.0 million for 2Q16, and $8.9 million for 1Q16.

(2) Interest income or expense annualized for the applicable period.

(3) Reflects taxable equivalent adjustments using the federal statutory tax rate of 35% in adjusting interest on tax-exempt securities to a fully taxable basis. The taxable equivalent adjustments included above amount to $0 for 1Q17, $0 for 4Q16, $0 for 3Q16, $2,000 for 2Q16, and $2,000 for 1Q16.

(4) Reflects taxable equivalent adjustments using the federal statutory tax rate of 35% in adjusting tax-exempt loan interest income to a fully taxable basis. The taxable equivalent adjustments included above amount to $140,000 for 1Q17, $142,000 for 4Q16, $142,000 for 3Q16, $113,000 for 2Q16, and $165,000 for 1Q16.



State Bank Financial Corporation
1Q17 Financial Supplement: Table 7
Reconciliation of Non-GAAP Measures (1)
Quarterly (Unaudited)
(dollars in thousands, except per share amounts; taxable equivalent)	1Q17			4Q16			3Q16			2Q16			1Q16

Book value per common share reconciliation
Book value per common share (GAAP)	$	15.96		$	15.80		$	15.21		$	15.00		$	14.73
Effect of goodwill and other intangibles	(2.30		)	(2.32		)	(1.22		)	(1.23		)	(1.24		)
Tangible book value per common share	$	13.66		$	13.48		$	13.99		$	13.77		$	13.49

Average tangible common equity reconciliation
Average equity (GAAP)	$	617,056		$	559,561		$	557,365		$	546,838		$	542,444
Effect of average goodwill and other intangibles	(89,406		)	(44,579		)	(45,100		)	(45,617		)	(46,157		)
Average tangible common equity	$	527,650		$	514,982		$	512,265		$	501,221		$	496,287

(1) The financial measures of tangible book value per common share and average tangible common equity included in this press release are financial measures that are not recognized by generally accepted accounting principles in the United States, or GAAP. These non-GAAP measures exclude the effect of the period end or average balance of intangible assets. Management believes that these non-GAAP measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities, such as us.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure is presented in the table above. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. These non-GAAP financial measures should not be considered as a substitute for GAAP financial measures, and we strongly encourage investors to review the GAAP financial measures included in this press release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this press release with other companies’ non-GAAP financial measures having the same or similar names.

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